Workforce Trends Through the Lens of Leadership and Employees

March 27, 2025 – The workforce is evolving rapidly, with flexibility, inclusion, and engagement emerging as essential pillars of organizational success. To better understand these trends, TI Verbatim Consulting (TIVC) and Hunt Scanlon Media conducted extensive research, gathering insights from HR leaders and workforce professionals across a broad spectrum of industries.

This report highlights key insights, including the differences and commonalities between leadership and employee perspectives on morale, retention, culture, and hybrid work. These findings offer actionable strategies to align leadership goals with workforce needs, fostering stronger, more resilient organizations.

HR leaders surveyed reported generally high employee morale, with over 75 percent rating morale as neutral to high. The most frequently reported factors impacting morale include: Workload (55.86 percent), work-life balance (43.24 percent), and compensation (40.54 percent). Employee Perspective: Employees show more variance, with a significant proportion (30 percent) reporting low morale. The most frequently reported factors impacting morale include: Compensation (34 percent), company culture (30 percent), and work-life balance (25 percent).

“Leadership perceptions are inevitably based on anecdotal evidence,” said Denise Nichols, chief people officer of Fortitude Re. “To fully understand employee sentiment, we have a deep commitment to capturing the voice of the employee—through regular pulse surveys, Ask Me Anything sessions, 1:1 sessions, focus groups, etc. These tools enable us to aggregate broad employee feedback and provide leadership with data-driven information.”

Related: Integrating Cultural Humility into the Coaching Process

“While reports from leadership show a largely positive morale landscape, with over 75 percent of the workforce as having neutral to high morale, employees themselves present a more complex picture, with 30 percent indicating low morale,” said Jeffrey Hanrahan, PhD, director of organizational optimization at TIVC. “This discrepancy highlights the importance of understanding the root causes of low engagement, such as compensation, culture, and work-life balance, and ensuring that leaders and frontline employees align on the true drivers of workplace satisfaction.”

Hybrid and Remote Work

Leadership Insight: Most HR leaders (70 percent) believe hybrid work improves morale and retention, but challenges like communication and culture maintenance remain. Flexible hours and regular check-ins are their top support strategies.

Employee Sentiment: Employees echo the importance of flexibility, with 65 percent favoring hybrid models. However, they identify clear communication and accessible technology as critical to hybrid success.

Understanding Organizational Culture vs. Climate: Keys to Effective Leadership

In today’s evolving work environment, understanding the nuances between organizational culture and climate is crucial for driving effective leadership and positive business outcomes. In this insightful webinar, hosted by TI Verbatim Consulting, our expert panel dives deep into the distinct roles that culture and climate play in shaping employee experiences and organizational success.

This insightful webinar was moderated by Elizabeth May and featured a panel of experts, including Jeffrey Hanrahan, Director of Organizational Development at TIVC, Zeve Marcus, research specialist at TIVC, and Amanda Fajak, CEO at Walking the Talk | A ZRG Company.

In this webinar, you’ll learn how organizational culture encompasses the long-term norms, values, and behaviors that define your company’s identity, while climate reflects the day-to-day atmosphere and employees’ immediate experiences. Tune in to gain insights into strategies for enhancing both culture and climate to foster a motivated and productive workforce. Click here to listen!

“It’s encouraging to see that leaders and employees are on the same page about hybrid and remote work,” said Elizabeth May, research specialist, TIVC. “It’s no surprise that leaders are examining the appropriate strategies to support a balance between flexible schedules and a strong company culture where employees feel engaged, included, and connected. We’re all going to have to learn how to communicate more effectively.”

Retention and Turnover

Leadership Focus: Leaders highlight company culture (69 percent) and competitive compensation (55 percent) as top retention strategies.

Workforce Viewpoint: Employees prioritize increased pay (49 percent) and career development opportunities (23 percent), emphasizing the need for immediate, tangible improvements over broader cultural initiatives.

Related: Empowering Middle Managers: The Keystone of Cultural Transformation

“Defining your true core values would have to be number 1 on the list,” said George Marc-Aurele, chief people officer of HarbourView Equity Partners. “Your values allow potential hires to make an informed decision about where they wish to join, and consistently operating by those values will keep your people engaged. The exact opposite is true for companies that publish a set of values because they sound great and wish them to be true. Employees are smart enough to know the difference. It is hard work, but well worth the effort.”

Culture and Inclusion

Leadership View: HR leaders largely view their culture as positive, with 59 percent describing it as “positive” or “very positive.” However, 44 percent cite transparency and communication as areas needing improvement, and 25 percent highlight inclusivity and leadership practices as critical growth opportunities.

Employee Insights: Transparency and communication are the most frequently cited areas for improvement, noted by 42 percent of employees. Inclusivity ranks as a priority for 23 percent, while 15 percent emphasize the importance of recognition programs and leadership alignment.

“Employees place a stronger emphasis on transparency and communication, with over 40 percent identifying it as a key improvement area,” Dr. Hanrahan said. “Inclusivity and recognition also emerge as critical factors for employees, suggesting that bridging these perceptual gaps is essential for fostering a cohesive and equitable organizational climate. Addressing these differences can enhance trust, reduce tensions, and align cultural values across all levels of the workforce.”

Emerging Trends

1. AI and Automation: HR leaders are leveraging AI tools for hiring and workforce planning.

2. Well-being Initiatives: Mental health programs and flexible schedules are reshaping workplaces.

3. Diversity, Equity and Inclusion: DE&I efforts remain central to fostering an inclusive, supportive culture.

“Leadership trends are showing an increased interest in AI-driven tools for strategic workforce planning, while also prioritizing well-being and flexible schedules to help address stress and burnout,” said Dr. Hanrahan. “These emerging trends highlight an evolving, more comprehensive approach to building resilient, people-centered organizations.”

Related: Advice to New CEOs Building Their Team: Lead with Purpose, Embody Culture & Be Decisive

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media